Troika Case Study

Topics: Potato chip, Potato, French fries Pages: 4 (938 words) Published: March 11, 2012




The project aims to develop a new establishment that will produce high-quality, competitively but cheaper-priced potato chips under the name, “Troika”, that will capture the international and as well as the local market.


According to the break-even analysis, a production of an amount of 121 tons (121000 g) of potato chips per year will be needed to reach a goal of full profit by the end of the year for Troika Potato Chips. To get this amount of tons of potato chips at the end of every year, about 11,500 hectares of farm land will be needed to be able to produce an amount of 15 tons of raw potatoes, with a total harvest of 100,000.

13.915 tons of raw potatoes_ X 100,000 number of harvest = 121 tons of total harvest

11,500 hectares

But since the total harvest must include the approximately 5% defective raw potatoes, a total amount of 280 tons will be needed with the same number of hectares to be used. Thus, total tons of harvest will amount to 2,434.783 tons of total harvest per year.

280 tons of raw potatoes X 100,000 number of harvest = 2,434.783 tons of total harvest

11,500 hectares

*** 2,434.783 X 5% = 121.74 tons

The number of hectares and tons of raw potatoes will depend on the production and net profit. By 2020, the company is expected to be producing and selling 289 tons of chips per year.

New suppliers for the other raw materials will be taken so as to act on the old suppliers that have ruptured old inter-regional ties. These new suppliers will be of from the local market. But the expense to be governed and the quality of the materials will be taken in great consideration as well.

A new establishment is to be developed that will include the product equipment which amounts to $ 803,600 for the purchase. The production line requires a 200...
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